Record Rout in Government Banks as Buffers Drop: Corporate India
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Shares of India’s state-run banks are trading near record-low valuations as concern grows about narrowing risk buffers and rising bad loans.
Indian Bank, United Bank of India Ltd. and Union Bank of India, have fallen more than 55 percent this year to Sept. 12, the most among the nine government banks that are leading declines for India’s 40 bank stocks. Shares of the nine lenders are all trading below the value of their assets amid lower-than-average capital adequacy levels and bad loan ratios that are about double those of private-sector lenders.